Bitcoin prices posted strong gains on Wednesday, rising more than $4,200 from the day's lows. This 7.1% rise against the US dollar took Bitcoin past his $66,000 threshold and peaked at $66,461 per coin on Bitstamp. As a result, the overall crypto market rose by 6.2%, with 51,567 traders liquidated on various crypto derivatives exchanges during the day.
Bitcoin soars to $66,000, with crypto derivatives facing a $127 million wave of liquidations.
Bitcoin rose 7.1% against the dollar, topping $66,000 at 3:45 p.m. Eastern Time (ET) Wednesday. The price of Bitcoin is currently trading at $66,300 per unit, with global trading volume of $34 billion in the past 24 hours. During the trading session, Bitcoin's value rose from the day's low to more than $4,200. This latest increase corresponds to a 5.2% rise in the past seven days against the dollar.
Bitcoin's first rally on Wednesday came after the U.S. Department of Labor's Bureau of Labor Statistics released its Consumer Price Index (CPI) report. On May 15th, major Bitcoin trading pairs included USDT, FDUSD, USD, USDC, and KRW, and the Korean won accounted for 2.36% of global Bitcoin trading. Bitcoin's weighted average global price is $66,300, but it was trading at $67,632 on South Korea's Upbit exchange as of 3:45 p.m. (that too).
Significant intraday price increases across the crypto economy led to the liquidation of numerous traders, with 51,567 traders liquidated today. In the past 24 hours, $127.98 million in derivatives positions were liquidated, including $83.39 million in short positions in cryptocurrencies. Specifically, $45.94 million of these positions were short Bitcoin positions and $17.88 million were liquidated short Ethereum (ETH) positions. Additionally, a short position in PEPE of $6.27 million was liquidated on the same day.
This recent rise in Bitcoin prices, fueled by strong CPI reports, has triggered a wave of liquidations, primarily affecting those on the wrong side of leveraged positions. The event, in which $127.98 million worth of derivatives were liquidated, highlights the high-risk nature of leveraged crypto trading, where large price movements can create wealth or destroy investments in a matter of seconds. It highlights the nature. While leverage dynamics can bring big profits, they also pose big risks, as many traders' positions were quickly liquidated on Wednesday.